This is the normal position for playing a "Dobro" style resonator guitar, and of course, as this guy is doing, you don't need a dobro or resonator...
Normally, this is done with a slide and played in open tuning. The technique is a little different than "bottleneck" slide, you normally hold the slide in your thumb and index finger and mute the strings with your little finger.
Look up "lap steel" or "dobro" on YouTube.